Nike has told staff it plans to reduce its workforce by less than 1% as part of plans to turn around the global sportswear brand.
Employees were told of the layoffs in an internal memorandum signed by CEO Elliott Hill and other senior leaders on Thursday (Friday AEST), according to media reports.
“Some of us will take on a new position or level, report to a new manager or join a new team,” according to the memo quoted in a Reuters story.
“A small number … will depart, and we’ll honor the contributions they’ve made here.”
Staff will learn if they are affected by 8 September, with most new roles taking effect on 21 September.
Nike had about 77,800 employees around the world on 31 May, including retail and part-time employees, indicating the job losses will be less than 7,780.
The layoffs will not affect Nike's EMEA and Converse businesses, and it is unclear exactly how many jobs will be impacted, according to a CNBC report.
Hill is implementing a “sport offense” strategy aimed at refocusing the company on product innovation and marketing around sports like running, unravelling changes made by former CEO John Donahoe.
In June, Hill said the company planned to "realign" into cross-functional teams organised by sport.
"This new formation is built to put sport and sport culture back at the centre, to connect more deeply with the athlete and the consumer," the company said in a statement on Thursday.
Shares in the 61-year-old American company known around the world for its ‘swoosh’ logo have almost halved over the last five years as profits have fallen.
Nike (NYSE: NIKE) shares closed 16 cents (0.20%) lower at $77.92 on Thursday (Friday AEST), capitalising the company at US$115.95 billion.
Last February, Nike announced plans to lay off 2% of its staff, or more than 1,500 jobs, as part of a broader restructuring.
